Corporate governance

Our company’s corporate governance is built on the values of fairness, honesty, accountability, transparency, professionalism and competency. Corporate governance is based on a genuine respect for the law in accordance with the legal interests of the Company’s shareholders and the ability to successfully accommodate them by improving operational efficiency, increasing value, maintaining financial stability, profitability and building a compelling investment story.

The Company’s corporate governance principles are based on the Organisation for Economic Cooperation and Development’s (OECD) corporate governance principles and Russian Governance Code provisions, which were approved by Bank of Russia’s Board of Directors and on 21 March 2014, as well as best international and Russian corporate governance practices:

The corporate governance practices provide:

a real opportunity for shareholders to exercise their rights as owners of the Company;

shareholders are treated equally owning to the equal number and same type (category) of shares, all shareholders are entitled to effective protection in the event of infringement of rights;

the Board of Directors’ strategic guidance of Company’s operations and effective control of the Company executive bodies, as well as the Board of Directors’ accountability to its shareholders;

the executive bodies’ ability to carry out management of the Company’s day-to-day operations reasonably, conscientiously, and in the interest of its shareholders, in addition to the executive bodies’ accountability to the Board of Directors and its shareholders

full and timely disclosure of accurate information about the Company, including its financial standing, performance indicators and ownership and management structure to enable shareholders and investors to make informed decisions;

as required by law or determined by mutual agreement, the rights of related parties, including Company employees, encourage active co-operation between the Company and shareholders in order to increase the Company’s assets, share value, other company securities and the creation of new jobs;

effective control over the Company’s financial and economic activities to protect the rights and legal interests of shareholders and investors.